The success of cryptocurrencies and blockchain technologies has opened up more investment opportunities for crypto investors. Most crypto platforms are now offering crypto-backed loans and pro-savings accounts services. These days, crypto investors can leverage their assets to make more profit without having to sell or trade.
If you’re new to crypto, then you should consider doing more research on crypto loan services. You will find plenty of crypto platforms that offer these services. In this guide, we will share handy tips to consider when looking for the best crypto loan and savings accounts.
Most platforms that offer crypto savings accounts also provide crypto-backed loans. The idea behind crypto-backed loans is to prevent holders from selling their crypto assets. The loans can also be offered in either crypto or fiat currency.
Loan approval times are quick, and you will get the loan deposited in either your bank account or crypto wallet. Most crypto lending platforms charge low interest rates to make their loans affordable.
The crypto-backed loans are only available to users who have some crypto coins in their savings accounts. The crypto coins are typically used as the loan security. The more savings you have, the bigger the loan amount you can secure at a time.
Crypto-backed loans can be used anywhere. You can use the fiat currency to pay off your mortgage, buy a car, or even purchase a new home. Most crypto investors take crypto-backed loans to improve their crypto portfolios by purchasing more coins or storing them in their accounts to earn more interest.
YouHodler Savings Account
YouHodler is one of the best crypto exchange platforms available. It offers a variety of services including savings accounts, crypto-backed loans, and exchange services. The main idea behind YouHodler is to allow crypto investors hold their crypto coins for long periods.
The savings accounts offer an APY of up to 16%. The APY is also compounded, which means that earned interest is also eligible to earn you more interest later on. The earned interest is deposited directly into your savings wallet at the end of the week.
Are Crypto Savings Accounts Worth It?
There is always that question of whether crypto savings accounts are worth investing in. However, you need to weigh the pros and cons before placing your coins in a crypto savings account. If used correctly, crypto savings accounts can help you build your portfolio.
Crypto savings accounts allow investors to earn free interest from their savings. You can use the earned interest to build your crypto portfolio. Most investors trade them for more valuable coins or swap the earned interest for fiat currency.
The best crypto savings accounts offer APY rates over 8%, which is quite profitable. If you have a big sum of crypto coins in your wallet, placing them in a crypto savings account can be very beneficial. It can be a good source of passive income.
Crypto savings accounts may have their own terms and conditions with regard to how many withdrawals you can make. Make sure you do your research beforehand. Also, check if there are limitations on how much you can invest.